Tesla Motors has confirmed that its cars have been authorized for a program that implements reservations of license plates for new energy vehicles in Shenzhen, China. This move by authorities is expected to promote electric vehicle growth in the country where Tesla has struggled with dismal sales.
China supporting electric car demand
Tesla indicated that prospective buyers of its Model S can immediately apply for the license plates under the program that reserves 20,000 tags per year in the southern city adjoining Hong Kong. For now, the procedure to get a license in Shenzhen includes a lottery or auction system to check pollution, making it quite hard to obtain. But now, people looking to buy an electric vehicle can get license plates without too much of a hassle.
It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More
Though Tesla buyers will still not be entitled to government incentives for new energy vehicles like sales tax exemptions and subsidies, the new campaign will aid Tesla in competing with BYD, an electric-car maker based in Shenzhen.